The party featured members photographed dressed in basketball uniforms, flashing gang signs and drinking out of cups fashioned from watermelons, KPHO-TV, Phoenix, reported Tuesday.
The fraternity, Tau Kappa Epsilon, got into trouble before previously for a fight that broke out at a party and left one student injured. The frat was suspended for that incident and had just recently returned when news of the racist party spread, KPHO said.
"We are aware of the situation. We have been contacted and we have been in contact with the local chapter and the university," said Patrick Gleason, the director of Compliance and Housing for the national organization based in Indianapolis. "I'll be meeting with the school as well as the local chapter, as I said, to really flush out the details of this incident and get a full scope of what occurred."
ASU student Frank Hogan said the party was in poor taste.
"This isn't appropriate at all and you really have no business dressing like this on a day that's sort of revered for African-Americans," he said.