Police found between 150 and 200 youths, many drunk and dressed in lingerie and wearing bunny ears, at the home of Jeff Lake and his daughter Olivia.
The party was halted following complaints from neighbours in Camino Del Valle in Poway, California.
Two teens, aged 17 and 19, are alleged to have been found unconscious at the event, which was advertised as Liv's Playboy Mansion.
Birthday girl Olivia, who attends Poway High School, was pictured on Instagram wearing a revealing black top but images have since been removed or marked as 'private'.
Officers arrested Mr Lake, a lawyer specialising in medical marijuana, and charged him with violating Poway's social host ordinance.
It is illegal to host a party where underage individuals consume alcohol, and Lake could face a six month jail sentence.
Poway Mayor Steve Vaus said: "You have a party like this and it's as though you're handing out hand grenades as party favours.
"It's a disaster waiting to happen."
He told ABC News: "I'd like to put a scarlet letter in front of the homes of people that do this, to say you can't trust these folks, they make bad decisions related to kids' safety."