Authorities were called to the property on Arthur St, Randwick, after complaints were made by neighbours.
When they arrived, they found eight men aged between 31 and 50 inside the home.
One of the men said he was present because he was delivering a package, however no such package was found.
Another man was found hiding behind a shower curtain in an attempt to evade police.
All eight were fined $1000.
A group of five people at the Entrance on the Central Coast were also fined after hosting a gathering at a private residence.
"People need to take responsibility. They need to make good decisions. Every single time that you make a poor decision, you put yourself at risk, your family at risk, and also the community," Deputy Commissioner Gary Worboys said.