A Richmond, BC man is experiencing an unexpected windfall after thousands of dollars were stolen from him due to mistaken identity, according to TD Bank.
The bank apologized to Le Zhang on Thursday and said his account had been frozen “in error” – nearly two weeks after the 36-year-old was horrified to discover on August 9 that around $7,800 had been withdrawn in the form of a court order.
“I just can’t believe how this happened,” Zhang said in an interview with CBC News the day before. “I just can’t sleep. I can’t even eat… I don’t know how I’m going to survive this.”
After Zhang noticed the withdrawal and contacted his bank, he found that the money had been seized as part of a garnishment — a court order to seize a person’s financial resources — of about $19,000 in connection with a water leak at a Richmond apartment complex.
He said a bank representative told him the rest of the money would be withdrawn from his account once more funds were deposited. His checking account balance was $0 earlier this week.
However, court and land records viewed by CBC News show that Zhang neither owned nor lived in the building in question – that was a man with a similar name.
After CBC News investigated the matter, TD apologized, saying it had received “incorrect information” from a third-party tool used to identify people in insurance claims and legal matters.
The bank said it would refund Zhang the full amount it had taken from him and offered him an additional $5,000 in exchange for his “frustration.”
Zhang, an educational assistant and father of two, says he is extremely relieved that TD is giving him his money back, as he has an upcoming mortgage payment and bills to pay and little savings.
“This should have happened on day one,” he said.
The leak in the heart of matter
In a claim detailing the alleged water damage, Leo Zhang and the registered owner of the apartment are listed as defendants.
The location of the incident is given as the street where Le used to live, but a completely different building and apartment number are listed there.
Le Zhang insists that he does not know the defendants, the residents or the owner of the unit.
CBC News contacted the registered owner in China, who said she was unaware of the damage report because she had not been to Canada in years and wanted to look into it.
Le Zhang, whose TD bank account was deducted for nearly $8,000, spoke to CBC News about the dire financial situation the deduction left him in. A few days later, TD said the money had been deducted in error due to a mistaken identity.
Zhang received the damage notice in 2022 by mail to the house he purchased after selling his condo.
Precision Paralegal explained that the firm obtained his address through a “discovery service” that it uses from time to time to locate information such as home addresses and work locations.
According to the delivery receipt obtained by CBC News, the claim was delivered to “Leo Zhang.” Le Zhang says he does not remember receiving the claim notice and would not have opened it if it had had a different name on it.
“If you are not the same person, I am sincerely sorry for any inconvenience and inconvenience this may have caused,” the paralegal service provider wrote in an email to Zhang before TD clarified the matter.
According to the damage report, in May 2021, a couple who owns a condo under Leo Zhang noticed water collecting on the ceiling of the laundry area.
“It was determined that the damage was caused by water leaking from the unit directly above the property,” the damage report said.
Thousands in compensation
A plumber advised Leo not to use the washing machine for the time being.
However, he continued to use the facility, resulting in further water damage and emergency repairs, according to the document, which accuses him of “negligence and lack of care.”
The couple’s property was insured by Security National Insurance Company (SNIC), an insurer of TD Insurance.
SNIC paid about $18,000, while TD Insurance paid a $1,000 deductible “due to the water damage incurred and the resulting insurance claim,” the claim statement states. Since then, hundreds of dollars in legal fees have been added to Leo’s bill.
No response was filed. Precision said it subsequently received orders to seize funds from Le Zhang.
CBC News attempted to contact Leo Zhang through several phone numbers and social media accounts that matched that name.
“Banks should have double checks on customers”
Precision declined to answer questions from CBC News and referred the matter to TD Insurance.
TD Bank Group declined an interview.
In a statement, it said: “This experience is not representative of TD Insurance and we understand the frustration it has caused. TD Insurance is committed to supporting its customers and is working directly with this individual to resolve the situation.”
Democracy Watch co-founder and advocate for greater bank accountability Duff Conacher described Zhang’s case as “a very unusual situation.”
“I think banks should check with customers again before allowing such a transaction,” Conacher said in an interview.
Zhang says the ordeal has made him distrustful of TD.
“I will definitely change my bank,” he said.
