Cheated daughter pursuing sheepskin (7)
I believe the answer is:
fleeced
'cheated' is the definition.
(fleecing is a kind of cheating)
'daughter pursuing sheepskin' is the wordplay.
'daughter' becomes 'd' (genealogical abbreviation).
'pursuing' says to put letters next to each other.
'sheepskin' becomes 'fleece' (synonyms).
'd' after 'fleece' is 'FLEECED'.
(Other definitions for fleeced that I've seen before include "soaked" , "woolly coat?" , "Robbed by trickery, like sheep" , "Shorn" , "Taken for a ride" .)