I usually shred all my documents and then give it a good mix. If you were really worried, go and do something nasty like pour mud or cooking oil or bodily fluids over the shredded up documents, throw in a bag, and then mash it up.
But yeah, it is probably identity theft. Even without that, it is illegal according to bylaw (I am pretty sure) to take somebody else's garbage. It is still technically their property until it is claimed by the city.
Don't bother with pranking the garbage to get back at him, you want to get people like him as far away as possible because he's likely done this before and succeded. Don't arouse his suspicions. Get a video of this guy doing this a few times in a row and then goto the police.
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