Yes this is true. Ringvereine (Circle Club) describe more the way how the underworld was organized. 1890 the first Ringverein was established called "Reichsverein ehemaliger Strafgefangener" (Reichclub former prisoner). Reichsverein means something like social club and was a legal umbrella.
Hotspot was Berlin but in every parts of Germany exist such groups and they were connected with each other. As umbrella they make sport or Music like other "Vereine".
But they business was prostitution, Gambling, theft, fencing, Drug (shipping from Latin America via Hamburg and Belgium like today), protection money from companys and extortion. A special thing was a kind of employment agency. If you want work as waiter, dance or something like that you need this guys. Also they have legit connection make dirty work for some rich people.
In 1929 a powerful club "Immertreu" have some legal troubles. But they have famous advocates and a lot partners inside the legit business world. Also some Artist was connected with this guys.
After Hitler's coup all ringvereine was banned. Some guys goes to the KZ. In 1940 Hitler established a special SS Group with criminals from the KZ.
After the war they don't vanished, but now they have new names. Sparclub (save club) or (skittle club). In 1957, one case attracted much attention. in middle Germany against "Goldene Neun".
In 60's society change and the whole Vereinsculture has changed. But a lot Underworld figures (Berlin and Hamburg) in 60's and 70's had a family or directly Ringverein background.
Albrecht (Ali) Höhler he killed Horst Wessel and was member of a Ringverein.