They are definitely not the same thing! You're right, condolences is used when someone has experienced loss or to express sympathy. You could say " *Name* send's his condolences to Linda" as an expression of compassion or sympathy if Linda has had a death in her family or friend's but not as a casual greeting. Regards means to consider or think about another person. So when we say 'Give Linda my regards' it would mean one wishes to express good thoughts to Linda as a friendly greeting. You can also say "Warm regards, Linda" or " *Name* sends his regards". At the end of a letter you might sign it as; "Warm regards, *Name* " Perhaps he wasn't aware of the difference between condolences and regards? Sometimes good friend's might tease one another by saying 'Give so-and-so my condolences!' as a friendly joke but that's generally not something people say outside of time's of grieving.

You are right. Condolences is only used to express sympathy, usually when someone dies.