By rule: Rule 10 Section 1 Article 9.
"A team shall not fail to have all players return to the court at approximately the same time following a time-out or intermission. Penalty-Two free throws plus ball for division-line throw-in."
So when you discovered that they only had 4 players on the court following a time-out, by rule, you should have stopped the game and assessed the team with a technical foul.
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