In a large pot, heat vegetable oil. Sauté onion, garlic, and jalapeno peppers until tender.
Add ground beef and cook until lightly brown.
Add chili seasoning, paprika, cumin, basil, and pepper.
Stir in kidney beans, diced tomatoes, and tomato sauce.
Bring to a boil, add sugar, salt, and chocolate. Reduce heat and let simmer for 30 minutes. If it gets too thick, add ½ cup water.