Felony did seem wrong (7)
I believe the answer is:
misdeed
'felony' is the definition.
(thesaurus)
'did seem wrong' is the wordplay.
'wrong' indicates anagramming the letters.
'did'+'seem'='didseem'
'didseem' anagrammed gives 'MISDEED'.
(Other definitions for misdeed that I've seen before include "Wicked or illegal act" , "Improper act" , "Wicked/illegal act" , "Improper, wicked or immoral behaviour" , "crime" .)