Punt Return Penalty

[MikeStrybel]

Last week, our Featherweight (U10, below 100#) team was set to receive a punt. We have had trouble blocking on these, so we put two receivers back to receive and brought another two about fifteen yards behind the LOS. At this level, we are not allowed to rush the punter. The other team kicked it and as soon as one of our boys touched the ball, a ref blew the whistle and tossed his flag. He announced an illegal formation penalty and marked it 10 yards from the spot of the touch.

Our league is the TCYFL and the officiating is usually excellent. The crews (3 man) typically work hard and communicate well. On this occasion, they chose not to explain and told us they would address it after the game. We won and I always make it a point to thank the crew. When I did, I asked if they could clarify the call. I was told that we can only have two receivers back. We follow Fed rules with some exceptions for safety and participation. Is their ruling correct? Thank you in advance for the help.