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Heat oven to 400°F. Line 15x10x1-inch pan with foil. Spray with cooking spray.
In large bowl, mix Meatball ingredients until well combined. Using rounded tablespoon measure, shape 20 meatballs (1 1/2-inch); place in pan. Bake 15 to 18 minutes or until no longer pink in center (at least 165°F).
Meanwhile, make sauce by heating oil in 2-quart saucepan over medium heat. Add crushed garlic and 1/4 teaspoon pepper flakes; cook 2 to 3 minutes or until garlic is fragrant. Add tomatoes, 1/2 teaspoon salt and the basil leaves; heat to simmering. Stir; cook 4 to 5 minutes or until slightly thickened. Remove from heat; cool 5 minutes. Carefully transfer to blender. Vent blender top, and cover with kitchen towel. Blend sauce 40 to 45 seconds or until garlic and basil are blended with tomatoes. Serve sauce warm with meatballs.