The phrase “ты разводишь меня” could define two meanings. Let’s look at a couple of examples. For instance, you are a traveler at the market and want to buy something however “Продавцы разводят туристов”. Which means that the sellers deceive tourists or gently impose a product or service. Typically it’s related to financial matter and you can be treated unfair. Another meaning could be considered as joking. For example, your friend is on the phone and trying to make you believe in something that is not true, typically in order to gain some personal advantage. Thus, *Твой друг разводит тебя* - Your friend is joking with you.

"You fool me around". Pure slang. A better way of expressing this emotion would be : Ты меня обманываешь (You lie to me); Ты ведёшь себя нечестно по отношению ко мне (You are not honest with me).

I agree with Эдуард and Daria and want to add that it's pure slang that shows a speaker knows something about real street life. If you are not sort of such a guy, don't use it.

You cheat me. - it means ,that word refers to something financial mostly . it could not be cheating wife with another woman , it could not be some practical joke the noun from it - развод - Это скорей всего развод - it would be rather deception it is slang , pretty rough , that word in that meaning exists just last 20 years in Russian language