In a heavy frying pan over high heat, heat the oil, add the garlic and saute until the garlic is soft, about 2 minutes. Add the bell pepper and continue to saute for an additional minute.
Add the mushrooms, sherry, lemon juice, and chile. Simmer over medium-high heat, stirring occasionally until most of the liquid is evaporated and the mushrooms are browned, about 5 to 7 minutes.
Remove from the heat, stir in the parsley, and season with salt and pepper. Serve the mushrooms either hot or at room temperature.
