In a skillet over medium heat, cook onion and bell pepper in oil until transparent. Add beef to onions and peppers; cook until brown. Set aside.

Place bacon in a large, deep skillet. Cook over medium-high heat until evenly brown. Reserve drippings and crumble bacon. Combine drippings and crumbled bacon with the beef mixture.

Add mushrooms, tomato sauce, tomato paste, garlic powder and oregano. Pour in wine while stirring. Stir in sugar, then salt and pepper. Cook until hot.