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Unless the original situation described was after a quarter or a time-out (resuming play), then by rule it is a technical foul on team B. I already cited case 10.1.5 Situation C (item B) so now I'll type it:
The calling official has reported the foul at the table and proceeds to the free throw lane area to administer the first of two free throws awarded to A1. Two B players are no occupying the two marked spaces next to the end line as required. Team B will be directed to occupy the required spaces. If there is delay, a technical foul shall be charged to Team B.
In the case above, there is even additional ammunition to penalize since the coach is being a horses patootie and refusing to comply. :-)
Z
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