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In a medium pot, heat the olive oil over medium heat. Add sausage and cook, stirring, until brown and the fat is rendered, about 4 minutes.
Add the onions, garlic, crushed red pepper, salt, basil, oregano, black pepper, and bay leaf, and cook, stirring, until soft, 4 minutes.
Add the tomatoes and their juices, tomato sauce, tomato paste, wine, cream, and sugar, and stir well. Bring to a simmer and cook, uncovered, stirring occasionally, until thick and the flavors are blended, about 30 minutes, adding water as necessary to keep from getting too thick. Remove from the heat, and cover until needed.