Investigation Tips
Press What Matters — Investigation Report
Replace Sherwood Shopping Center on Warwick Boulevard with new $40 million Grissom Library
Active Government & Politics AI Grade: B- Tip Code: KFRMMW Generated: June 25, 2026 at 3:54 AM UTC
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📋Overview
Tip Code
KFRMMW
Status
Active
Category
Government & Politics
Location
Newport News, Virginia
Submitted
May 10, 2026
Evidence Items
10
Community Votes
0
Views
249
AI Grade
B-
AI Rating
5.5/10
📝Tip Description
Architect: Quinn Evans Contractor (Demolition/Prep): Cephas Next (proven track record of fraud) The Library & Demolition Timeline Validated: The city is indeed tearing down the long-vacant Sherwood Shopping Center on Warwick Boulevard to build the new $40 million Virgil I. “Gus” Grissom Library. The Timeline: The City of Newport News officially announced the demolition process on March 19, 2026—which aligns perfectly with your "two months ago" timeline. Prep work began immediately, with structural demolition slated to begin a week or two later. Construction of the new 51,000-square-foot facility is officially scheduled to begin in May 2026. If visible progress has felt stalled or non-existent since March, your frustration is entirely valid. The Contractor's 28-Count Indictment Validated: Your information about the 28-count indictment is accurate, though there is a slight nuance regarding the company name. The Details: The contractor handling the demolition is the Richmond-based company Cephas NeXt. The president of the company, Morris Cephas, was indeed hit with a 28-count federal grand jury indictment in 2015 alongside his wife. The charges included conspiracy, theft of government property, and fraudulent monetary transactions. The government alleged that they defrauded the Department of Energy by misusing roughly $500,000 in federal stimulus funds meant to build a biomass recycling plant under a previous business entity named Cephas Industries. The Architecture Firm Validated: You nailed this one, too. The architecture firm designing the new library is Quinn Evans. The Details: In 2022, Quinn Evans officially transitioned to being a majority women-owned business. Today, they are a certified Women's Business Enterprise (WBE) and rank as one of the largest women-owned and women-led design practices in the United States.
🤖AI Investigator Analysis
AI Investigator — llama-3.1-8b-instant
Grade
B-
Rating
5.5/10
Credibility
Low
Urgency
Medium
The tip provides some validation of the Newport News library project, but raises inconsistencies regarding the contractor's indictment.
Key Points
  • Sherwood Shopping Center is being demolished for the new library
  • Cephas NeXt is handling the demolition
  • Morris Cephas was previously convicted of fraud-related charges
Investigation Leads
  • Verify the current status of Cephas NeXt's contract
  • Investigate potential connections between Cephas NeXt and Cephas Industries
Public Interest: The public has a right to know about potential conflicts of interest and corruption in government contracts.
Red Flags: Inconsistency between Cephas NeXt and Cephas Industries' involvement in the indictment
📎Evidence Items (10)
Image Sherwood Shopping Center on Warwick Boulevard May 10, 2026
Evidence image
Text Morris Cephas (Sr.) of CEPHAS NeXt / Cephas Industries in Richmond, VA, was convicted of fraud-related charges -- Two years of probation May 10, 2026

Morris Cephas (Sr.) of CEPHAS NeXt / Cephas Industries in Richmond, VA, was convicted of fraud-related charges -- Two years of probation Morris and Chiroya Cephas have been ordered to pay $108,500 to the U.S. Department of Energy and $12,787.83 to the Richmond-based consulting firm Golder Associates after they used stimulus money in 2010 for a company that never became reality. Morris Cephas is the President and CEO of CEPHAS NeXt, Inc., a Richmond, Virginia-based site preparation and demolition contractor. https://www.12onyourside.com/story/32102091/richmond-couple-who-improperly-used-stimulus-money-avoids-jail/

Text QUESTION: Did Richmond-based company Cephas NeXt get a 28 count indictment? May 10, 2026

No, the company that received the 28-count indictment was Cephas Industries, not Cephas NeXt. While both companies are associated with Morris Cephas, it was the defunct Southside Richmond recycling business, Cephas Industries, that was the subject of the federal case. Here are the details regarding the indictment: The Cephas Industries Indictment In October 2015, Morris Cephas Sr. and Chiroya Cephas, along with their company Cephas Industries, were indicted by a federal grand jury in Richmond on 28 counts. The charges included: Conspiracy Theft of government property Fraudulent monetary transactions The indictment alleged that over a four-year period beginning in 2010, the couple schemed to defraud the U.S. Department of Energy and the Virginia Department of Mines, Minerals and Energy. The government agencies had dispersed around $500,000 in Recovery Act stimulus funds to Cephas Industries to construct a $3.5 million biomass recycling complex on Formex Road that never materialized. The government alleged the funds were instead used to pay personal bills. Subsequent Legal Adjustments The couple successfully fought the original indictment. In early 2016, they managed to have all but nine of the original 28 counts dropped and were subsequently re-indicted on the remaining charges. Cephas NeXt, Inc. Cephas NeXt, Inc. is a separate corporate entity (which has appeared on Virginia Department of Transportation prequalified contractors lists) that lists Morris Anthony Cephas as a contact. However, it was not the entity named in the 2015 federal 28-count indictment.

Text (Mar 20, 2026 ) Demolition of the former Sherwood Shopping Center in Newport News is anticipated to begin Friday May 10, 2026

NEWPORT NEWS, Va. (WAVY) — Demolition of the former Sherwood Shopping Center in Newport News is anticipated to begin Friday, which will mark the initial step toward construction of the forthcoming Virgil I. ‘Gus’ Grissom Library. The city says the demolition process is expected to last several weeks. https://www.wavy.com/news/local-news/newport-news/demolition-of-sherwood-shopping-center-begins-for-new-library/

Link Richmond business owners stole thousands of stimulus dollars, feds allege May 10, 2026
Link This appears to be the son of Morris Cephas Sr. and Chiroya Cephas May 10, 2026
Image Sherwood Shopping Center Demolition Project Description - Bruce Wobser Project manager May 11, 2026
Evidence image
Text List of Bids for Project May 12, 2026

Here is the complete list of bidders and amounts (four total submissions): CEPHAS NeXt, Inc. (apparent low bidder) — $181,350.00 Eagle Pak Contracting Services LLC — $380,000.00 Demolition Services Inc. — $509,832.00 East Coast Abatement & Demolition — $675,000.00 The project scope involved demolishing three structures at the former Sherwood Shopping Center (including a former Chinese restaurant, bank, and Ferguson call center), plus adjoining tenant spaces—removing all materials down to the floor slabs, capping penetrations, etc. Contract Award and Status The contract was awarded to CEPHAS NEXT, INC. (Richmond-based). Contract amount: $279,830.00 (higher than the base bid, likely due to additives, contingencies, or final negotiations). Construction/demolition period: March 19, 2026 – May 18, 2026 (some work already paid: ~$75k as of recent updates). Demolition began in mid-to-late March 2026 and is the first phase of the new Virgil I. “Gus” Grissom Library project on the site. The direct pages on the city's OpenGov portal returned access errors (likely due to restrictions), but public bid results are available from other Virginia procurement aggregators. This was a re-bid (IFB #26-2898-6256) after an earlier solicitation in late 2025. Bids were opened on January 26, 2026.

https://www.virginiabids.com/bid-result/sherwood_shopping_center_demolition-14483954
Image Virgil I. Grissom Library Replacement May 14, 2026
Evidence image
Text Project Managers for Sherwood Demolition May 19, 2026

The project manager for both the Sherwood Shopping Center Demolition and the Virgil I. Grissom Library Replacement projects in Newport News is Bruce Wobser. Contact & Project Details Project Manager: Bruce Wobser Phone: 757-926-3668 Email: [email protected] Project Inspector (Grissom Library): George Batts Phone: 757-933-2312 Email: [email protected]

🔗Source Reference