His involvement in heartless frauds creates divisions (7)
I believe the answer is:
schisms
'divisions' is the definition.
(schism is a kind of division)
'his involvement in heartless frauds' is the wordplay.
'involvement in' is an insertion indicator (inserted letters get involved in others).
'heartless' says to hollow out the word (remove centre letters).
'frauds' becomes 'scams' (scam is a kind of fraud).
'scams' with its centre taken out is 'scms'.
'his' placed inside 'scms' is 'SCHISMS'.
'creates' is the link.
(Other definitions for schisms that I've seen before include "Breaches in the church" , "Religious disunities" , "Breaches in churches" .)