Oliver is welcomed in the colorful world of Fagin and his gang. He soon meets Bill Sikes and Nancy, and before long Dodger is teaching Oliver 'the graft'. Oliver is horrified when he realizes what this means. Oliver is soon arrested for something he didn't do and is sentenced but is soon exonerated. He settles in Brownlow's home and becomes a favorite of his ward. After receiving an anonymous letter promising news of his mother, he is lured into a trap. Nancu and Sikes return him back to Fagin.