Heat oil in a large stockpot over medium-high heat. Add onion, celery, garlic, and jalapeño and sauté 4 minutes, until tender. Add beef and sauté until browned and cooked through, breaking up the meat as it cooks, about 5 minutes; drain mixture through a colander to remove excess fat.
Return beef mixture to pan (set over medium-high heat) and add chili powder, cumin, oregano, bay leaves, salt and red pepper flakes; stir to coat vegetables and beef with spices. Add tomatoes, beef broth, tomato sauce and beans, and bring mixture to a boil; reduce heat and simmer, partially covered, for 30 minutes.
To serve, discard bay leaves, ladle chili into bowls and top with chopped shallots. Yields about 1 1/2 cups per serving.