The District Attorney's Office said it will appeal Wednesday's decision, adding that the office "will continue working to ensure that Mr. Manafort is held accountable for the criminal conduct against the people of NY that is alleged in the indictment".
Manhattan Supreme Court Justice Maxwell Wiley said state law prohibits the type of case brought by the Manhattan District Attorney's Office in an effort to ensure Manafort would be held accountable and remain in custody should Trump move to issue a pardon for the federal convictions.
Todd Blanche, Manafort's lawyer, confirmed that he had been hospitalized but did not provide further details.
The factual overlap between the federal and state cases "is extensive - if not total", Blanche wrote in court papers.
In a hearing that lasted just a few minutes, Wiley said he agreed, announcing his ruling to prosecutors and Manafort's lawyers.
The Manhattan district attorney's criminal case against former Trump campaign manager Paul Manafort has been dismissed by a ny judge. He wasn't in court Wednesday to see the state case dismissed because of a health problem.
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A federal judge has sentenced former Trump campaign official Rick Gates to 45 days in jail and three years of probation, despite his extensive cooperation in special counsel Robert Mueller's Russian Federation probe and other investigations.
Manafort's federal convictions stemmed from allegations he misled the USA government about lucrative foreign lobbying work, hid millions of dollars from tax authorities and encouraged witnesses to lie on his behalf.
Mere minutes after Mr. Manafort's second federal sentencing, the District Attorney-delivering a statement that was as much campaign speech as public announcement-proclaimed the indisputable principle that "n$3 o one is beyond the law in NY".
According to the indictment, Manafort allegedly schemed to obtain more than $20 million in loans by submitting false and fraudulent documents to a series of banks from December 2015 through January 2017. He was also charged with falsifying business records and conspiracy.
Prosecutors had argued that the case was based on allegations that were never resolved in Manafort's 2018 federal trial in Virginia.
He provided evidence against powerful people, including Trump's onetime campaign chairman, Paul Manafort, and Roger Stone, Trump's longtime friend and former campaign adviser. Jurors found Manafort guilty of eight counts of tax- and bank-fraud charges but couldn't reach a verdict on 10 other charges, resulting in a mistrial on those counts. Trump can not pardon people for state crimes.