You have to control this imagination, Alison. Don't you want a mummy and daddy? No one will take you as long as you are like this. No one wants a crazy girl!
Well...I guess that could happen...for a price.
Mr. Silver found Ali Sword on his doorstep when she was a baby. He took her into his orphanage and watched her grow up, as she made friends with Filipe. A few years later Rudolfo and Justine came to him after midnight, hoping to secretly get a child to replace their son, Rena, who Justine killed. Mr. Silver, for a price, gave them Filipe. They all then pretended that the boy was never adopted and had always been called 'Renato Abelho'. ("The Truth Comes Out, Part 2")
However Ali never forgot. During her time at the orphanage she constantly asked Mr. Silver about the boy who had gone missing. Mr. Silver told her that she had made the boy up, and he didn't actually exist. He told that she had to stop being crazy if she wanted to be adopted. ("Burning Bridges") Eventually Ali was adopted, by a family at Wiksteria Town where she would meet Rena once more. ("Pilot")
She didn't know the difference between reality and fantasy. I don't know why she would tell you that you use to live here, but it's certainly not true.
After Ali told Rena that he was adopted, Rena seeked proof from Mr. Silver. However Mr. Silver told Rena that Ali had lied to him, as she was crazy. He then phoned Justine to update her on Rena looking for answers. ("You Meddling Kids")
You made her feel crazy, treated her like she wasn't normal.
Rena returned to Mr. Silver, after finding out the truth. He wished to find his real parents and Mr. Silver complied, assuring Rena that he wasn't aware of the full picture and wouldn't have helped Justine had he known. Rena points out how he treated Ali, and tells Mr. Silver that he isn't a good person. ("Sorrow is Forgiven, Not Forgotten")